CrowdCheck, founded by securities crowdfunding OG Sara Hanks, has been sold once again. Securities crowdfunding data platform KingsCrowd has purchased the company. Terms of the deal were not revealed.
Chris Lustrino, founder and CEO of KingsCrowd, stated that he has long admired CrowdCheck and thought very highly of Hanks.
“The team she built and the trust she has created in this market is unparalleled. The chance to bring our capabilities together to provide the best-in-class suite of founder advisory tools in the investment crowdfunding landscape is a major opportunity to advance the Kingscrowd business forward and the industry at-large.”
Last year, it was reported that Hanks had sold the business to Nicole Loftus, who wanted to expand the operations. Apparently, her expectations must have fallen short.
In an interview with Hanks, she explained that while she would remain engaged with the company, she would no longer manage its day-to-day operations. At that time, CrowdCheck reported 22 employees.
CrowdCheck has remained a top legal advisor for exempt security offerings and, more specifically, Reg A+ qualifications. For documents filed with the SEC, having the CrowdCheck name attached was a stamp of confidence for regulators and investors.
Hanks commented on the Kingscrowd acquisition:
“For some time, it’s been clear that an alliance with Kingscrowd has made a tremendous amount of sense; our services complement where they don’t overlap. Kingscrowd’s technology and data will permit CrowdCheck to deliver its services on an ever more efficient and comprehensive basis.”
The CrowdCheck team is expected to be retained and Kingscrowd indicates it plans to leverage its data and software capabilities to enhance the customer experience and pair ongoing reporting capabilities with the Kingscrowd investor relations platform.
Earlier this year, KingsCrowd raised money on StartEngine at a pre-money valuation of $13.9 million. KingsCrowd may have used part of this funding to purchase the CrowdCheck business.
